Abstract

This piece of work was concerned with examining the impact of COVID 19 on restaurant business in Cameroon which is the main objective of the study. The research problem was stated, and research questions were raised. Specifically, the study intended to determine how restaurant businesses have been operating since the time lockdown was lifted, to find if restaurant businesses applied any contingency measures to remain floating and to find how restaurant businesses are looking into their future prospects based on strategies adopted. The survey was carried out using a quantitative data collection. The study employed descriptive method to analyze the Data. Data was collected using questionnaires were by descriptive statistical methods were used to analyze the data. Questionnaires were self-administered by the researcher and some through social media platforms and of which 40 were returned with respective responses. With the responses and findings gathered, it was concluded that there is a significant impact of COVID 19 on restaurant business in Cameroon. However, it is recommended that restaurants should have contingency plans particularly in terms of diversifying their activities to survive in emergency situations such as the pandemic.

Key Words: Restaurant Business, COVID 19.

INTRODUCTION

In 2019 an infectious disease known as COVID ‐19 struck Wuhan, one of the most populous cities of China. Subsequently, the deadly virus spread across the world. Many countries are witnessing its unprecedented growth and life loss (Kaushal & Srivastava, 2020; Kuzilwa, 2005). Covid‐19 pandemic is an “existential threat”, classified as a global shock by the United Nations Development Programme 1994 and by the UN Commission of Human Security 2003 (Rubin, 2011). Due to COVID ‐19, the world economy was shut down (UNWTO, 2020). A 2019 joint report from the WHO and the World Bank estimated the impact of such a pandemic at 2.2 percent to 4.8 percent of global GDP (Chaudhary, Sodani, & Das, 2020). The COVID‐19 shocked the world as the health crisis gradually engulfed many nations and slowly it has turned into an economic crisis (Ding, Levine, Lin, & Xie, 2020; Ramelli & Wagner, 2020). The effect on health has been devastating; however, the catastrophe it cast sets it apart from any disaster in living memory (Huang, 2020). It is testing all leaders, entrepreneurs, and employees operating in different industries (Eggers, 2020; OECD, 2020).

The restaurant business sector plays an essential role in the economy of a country even though many small and medium-sized restaurants fail during their first four years of activity, which is an example of the need for strategies to financially sustain their business beyond five years (Gnonlonfoun, 2017). Other authors have also pointed out the importance of a survival strategy for the restaurant sector and for re-establishing consumer confidence (Sigala, Serverson, Kim, Lee, Tang et al., 2020).

Coming back in the African context, even if the impact on human loss is not the same as in western countries, African countries are already feeling economic effects. Cameroon since then, is the most affected ‘one in the central African region. The first case has been declared the 6th march 2020 and of course, many measures have been taken by Cameroonian government on 17th march 2020(figure1) and edited twice on 24th March 2020 and 30th April 2020 with the aim of reducing the transmission of this virus. Compared to other countries, a complete lockdown has not been observed, because the pandemic found a weak economy, tortured by the various crisis in his North regions with Boko haram and South-West and Northwest regions with separatists’ group. The country could not afford a complete break of his economic activities. Even with those light restrictions Cameroon is still facing an economic slowdown added to that consumer’s fear. Approximately 200 restaurants and cafes are running their businesses in Buea-Cameroon. Apart from indigenous restaurants, Cameroon has also over the years seen a growing number of food franchises. The growth of this sector has not only contributed to the state GDP but has also opened job opportunities for many skilled as well as semi-skilled workers. However, this sector proved to be one of the most vulnerable sectors under the COVID 19. Uncertainty and anxiety created by the pandemic made many people wary of eating out even when the lockdown restrictions were lifted as people preferred to eat at home rather than among strangers in a restaurant. Consumers who perceive the threat of the COVID19 to be high evaluate the private dining restaurant and private dining table highly (Kim & Lee, 2020).Since many of these businesses they do not offer home delivery or take out services, they faced complete loss of income not only during the lockdown phase but also in the post lockdown phase and necessitated a rethinking of their policies. Learning for the future considers the need for changes in management and investment so that companies can be better prepared for similar situations (Madeira, et al., 2021). The reduction in the gravity of the COVID 19 situation in worldwide helped to change this situation and the restaurants in Cameroon again started getting their customers. But the losses suffered in the past and the ongoing character of the pandemic together worked to retain a negative influence on this sector. A unique transformation needs to be opted by the stakeholders in order to keep the hospitality sector new and interesting (Rahman, 2020). Unless the restaurant sector brings changes in the way they operate, surviving the pandemic is going to be a mammoth task. This study therefore looks at the impact of COVID 19 on Restaurant businesses in Cameroon.

Problem Statement

The recent health crisis caused by COVID-19 quickly turned into a financial downturn due to the restrictions imposed by most countries to control the expansion of this pandemic (IMF, 2020). This unexpected crisis has particularly affected the tourism industry, and as a result, the restaurant business has been one of the most affected (Muller, 2020).  Restaurants were forced to close or operate with many limitations and in some parts of the world, only take away and delivery services were allowed. Although restaurateurs have experienced and survived many crises in recent decades, this new pandemic will have devastating effects on the world economy, never before experienced in modern times (Kim, Lee, S.K, Tang, Alonso et al., 2020). For the first time in history, the world is facing a crisis that has suspended the future of all types of restaurants, with an extraordinarily important weight on the world economy and especially on destinations with a greater tourist and gastronomic vocation, as well as the thousands of people who work in and depend on this industry to survive (Marca, Niederberger, Nicola et al., 2020). 

Furthermore, restaurant businesses along with other businesses were out of business during the lockdown. However, apprehensions and uncertainties associated with eating food from outside caused comparatively greater problems for such businesses. For the restaurant businesses operating in Buea-Cameroon the problem of survival is even more acute as most of such businesses are small or medium scale with little to none sustaining capacity and contingency plans. This study therefore looks at the impact of COVID 19 on Restaurant businesses in Cameroon by providing answers to the following research questions:

Object of the work.  COVID 19 impact on Restaurant businesses in Cameroon

The practical aim of the study: The primary purpose of this study is to examine the impact of COVID 19 pandemic on restaurant business in Cameroon.

The Significance of This Research: The findings of this study would be relevant to the following groups of persons:

To the restaurant entrepreneurs, the findings of this study will widen their perception of the ability to withstand such a shock/crisis but also their capacity to recover, which is one of the definitions of resilience. This concern with economic survival in the pre and post-pandemic by adopting relevant strategies for survival.

The findings of this study would equally be important to the government and policy makes as it explores various measures restaurant businesses can use coup the spread of the pandemic. Equally, the study shows that restaurants use more proactive than passive strategies in response to certain types of crisis, involving regulatory agencies and customers. This can be observed in the present study, with concern about hygiene regulations as a way to provide safety to customers. 

Also, Research on COVID-19 is crucial because it leads to answers to real-life issues Knowledge about the anxieties and desires of a given business sector allows policymakers to adapt solutions to the needs of entrepreneurs, which will strengthen confidence in the economy and in the future. Again, the study will add to the existing literature on pandemic crisis and restaurant businesses.

Finally, this study also serves as a partial fulfillment of the requirements for the award of a Bachelor of Science (B.Sc.) Degree in Business Management in the International School of Law And Business. The findings, results and recommendations will also serve as a boost to the moral of the researcher to go in for further research and look for solutions to vital social problems and gain more knowledge concerning measures to control such pandemic.

Objectives of the work: To examine the impact of COVID 19 on restaurant business in Cameroon.

The specific objectives include:

• To investigate how restaurant businesses have been operating since the time lockdown was lifted.
• To find if restaurant businesses applied any contingency measures to remain floating.
• To find how restaurant businesses are looking into their future prospects based on strategies adopted.

Hypothesis of the study: The hypothesis of the study is following.

• There is no significant impact of COVID 19 on restaurant business in Cameroon.
• There is a significant impact of COVID 19 on restaurant business in Cameroon.

Method of Research: This study is conducted for the restaurant businesses. The conceptual scope of this study is defined by examination of the impact of COVID 19 on restaurant businesses. The quantitative research method will be used in this study with the usage of the primary data. The use of questionnaire will help in examining the impact of COVID 19 on restaurant businesses. We will proceed with the analysis of the data using descriptive analysis and inferential statistics. The results obtained from this study will be generalized for all restaurant businesses.